Calix Ltd. · ASX:CXL
Calix — Investor Presentation (August 2022)
37 slides from Calix's investor presentation, Aug 24, 2022
Slide 1: Calix Limited Full Year FY22 Presentation
CALIX LIMITED Full Year FY22 Presentation August 24, 2022 Solving global challenges 1
Slide 2: Important Disclaimer
Important Disclaimer This presentation has been prepared by Calix Limited (ABN 36 117 372 540) (“Company”). performance of Calix, nor does it guarantee the repayment of capital from Calix or any particular tax treatment. Persons should have regard to the risks outlined in this presentation and appen
Slide 3: Mars is for quitters
Mars is for quitters We believe our responsibility starts at home. That’s why we’re driven to use our unique technology to repair, preserve and prevent future harm to it. Because there’s only one Earth, and it’s already ours. 3
Slide 4: Sustainability is in our DNA
• Sustainability is in our DNA Mission: Delivering on our promises. FY22 ACHIEVEMENTS • First Sustainability Report (COP Communication on Progress) published in Nov 2021. • SDG Ambition Acceleration Program (6 months) completed. • Awareness training on the Sustainable Development Goals conducted for
Slide 5: Calix is developing multiple environmental business opportunities
Calix is developing multiple environmental business opportunities… ..and looking to fast-track commercialisation and value-adding through JV / Licensing and Spin-Out strategies Advanced Sustainable CO2 Water Biotech LEILAC Group Batteries Processing Mitigation Water Treatment Crop Protection Advance
Slide 6: Calix's core technology platform
Calix’s core technology platform A PATENTED PLATFORM TECHNOLOGY WITH THREE KEY FEATURES CO2 capture When processing limestone, gas exhaust A new way to “heat stuff up” is high purity CO2 28 patent families covering core technology and applications Renewable >A$120m has been energy-ready invested to
Slide 7: Key Highlights – FY22
Key Highlights – FY22 SIGNIFICANT PROGRESS ACROSS MULTIPLE LINES OF BUSINESS, “LOOK THROUGH” VALUE ACHIEVED FOR CO2 MITIGATION TECHNOLOGY Carbon Direct Calix CO2 business: Calix included in Calix a partner Pilbara Minerals Calix 29 Calix and 5 July 15 10 S&P 300 quarterly 14 9 May 17 awarded June RH
Slide 8: FY22 priorities…and Report Card
Successfully Completed FY22 priorities…and Report Card Significant Progress Behind CO2 Advanced Water Biotech Sustainable Processing Mitigation Batteries Revenue and Gross Margin Cement and Lime Crop Protection Successful full (coin) Refractories growth via… • Successful test campaign • 2nd license
Slide 9: FY22 Financial Results
FY22 Financial Results 9
Slide 10: Progress in FY22
Progress in FY22 EVOLUTION OF REVENUE PROFILE Revenue & Other Income Key takeaways… 35 Sales in FY22 impacted by loss of low margin refined coal customer anticipated in acquisition valuation – offset by higher 30 margin sales with gross profit increases 25 Fluctuations in grant income relates to tim
Slide 11: Summary of Results FY22 – Profit & Loss Highlights
Summary of Results FY22 – Profit & Loss Highlights INVESTING HEAVILY IN CAPABILITY TO CAPITALISE ON TECHNOLOGY COMMERCIALISATION FY22 FY21 Comments ($m’s) ($m’s) Sales revenue 18.5 19.2 Gross Profit 5.2 5.0 Focus on higher margin sales Grant and other income recognised 2.3 5.2 Leilac 1 to Leilac 2 t
Slide 12: Balance Sheet strength
Balance Sheet strength BALANCE SHEET STRENGTHENED THROUGH STRATEGIC SELL DOWN IN ONE OF OUR LINES OF BUSINESS 30 June 22 30 June 21 ($m’s) ($m’s) Key Take-aways… Cash & Cash equivalents 25.0 15.1 Total Assets 61.2 51.6 Sale of minor stake [~7%] in Calix’s LEILAC Group demonstrated underlying Total L
Slide 13: Progress in FY22
Progress in FY22 INVESTING IN TECHNOLOGY PLATFORM FOR MULTIPLE ENVIRONMENTAL OUTCOMES Recent history demonstrates efficient use of capital driving material outcomes… Annual Operating Cashflow [cash earnings] Since Calix’s first commercial scale demonstrator plant came online in Accumulation of Opera
Slide 14: Progress in FY22: Detailed allocation of funds by line of business
Progress in FY22 DETAILED ALLOCATION OF FUNDS BY LINE OF BUSINESS MARCH 21 CAP NET CARBON DIRECT REVENUES EXPENSES CAPEX RAISE WHAT DID WE ACHIEVE? INVESTMENT INVESTMENT ALLOCATIONS $1.9m [$2.8m Carbon Direct investment – L2 to FID, 52 projects grant cash in the pipeline – new projects with Adbri &
Slide 15: Decarbonisation – CO2 and Sustainable Processing
Decarbonisation – CO2 and Sustainable Processing 15
Slide 16: ESG Interest Continues to Strengthen
“Environment / Social / Governance” (ESG) Interest Continues to Strengthen GLOBAL ECONOMIES, COMPANIES AND INVESTMENT FUNDS ARE ALL HEADING IN ONE DIRECTION 66% of global GDP* Top companies committing ESG Exchange Traded Funds From USD1.3 to USD4 and carbon emissions currently to net-zero emissions
Slide 17: Calix's business opportunities and ESG tailwinds
Calix’s business opportunities and ESG tailwinds MULTIPLE “SHOTS ON GOAL” ESG OPPORTUNITY USING ONE PATENTED CORE PLATFORM TECHNOLOGY Advanced Water Biotech Sustainable Processing LEILAC Group Batteries • Safe, environmentally friendly • Targeting safe, • LEILAC technology for cement • Safe, environ
Slide 18: LEILAC Group: Scaling Up Calix's LEILAC Technology
LEILAC Group: Scaling Up Calix’s LEILAC Technology LEILAC-1 Belgium 2019 LEILAC-2 Hanover 2024 LEILAC-3 25,000 Tonnes / Year CO2 100,000 Tonnes / Year CO2 500,000 Tonnes / Year CO2 Built Passed FID Multiple In Planning 20% 4x Slipstream 100% Replace 20 partners, including BUT ….. we need to mitigate
Slide 19: LEILAC Group: A growing pipeline of projects
LEILAC Group: A growing pipeline of projects… POTENTIAL LOWEST COST CEMENT AND LIME CO2 MITIGATION SOLUTION Detailed FID + Project Initial Pre FEED / Operationa Discussions Scoping Scoping / BOD FEED Constructio l Total SEPT 2021: LEILAC-1 Output Report Released – Roadmap MOU n “2050” - Confirms LEI
Slide 20: Sustainable Processing
Sustainable Processing CALIX TECHNOLOGY … EVERYWHERE! SPODUMENE REFRACTORY IRON AND STEEL LC3 ALUMINA CO2 reduction into Revolutionary at-mine low New patent filed for Next Generation Electrifying Aluminium existing magnesia production CO2 footprint Li salt manufacturing Calix’s ZESTY process Clay C
Slide 21: Development of lithium salt project with Pilbara Minerals
Development of lithium salt project with Pilbara Minerals TARGETING JV FORMATION AND COMPLETION OF FEED IN FY23 First Lithium Phosphate salts • PILBARA MINERALS (ASX:PLS): JV MOU Executed with $20m in produced in pilot plant Federal Government funding announced under the Modern Manufacturing Initiat
Slide 22: ZESTY: Zero Emissions Steel Technology Development
ZESTY: Zero Emissions Steel Technology Development SUCCESSFUL ACCELERATED DEVELOPMENT TO PILOT SCALE TESTING IN 6 MONTHS Phase 1: Jan 2022 to Mar 2022 Calix’s first fully- electric calciner LAB Scale: H2 reduction kinetics, Ore variability and performance. Kinetic “BATMn” for theoretical work combin
Slide 23: Water
Water 23
Slide 24: Water business – Magnesium Hydroxide Liquid (US)
Water business – Magnesium Hydroxide Liquid “MHL” – a safe alkali chemical TOUGH CONDITIONS BUT REVENUE AND GROSS MARGIN GROWTH UNDERWAY IN CORE WATER BUSINESS FY22 Updates: Corporate US • Revenues – US$9.7m FY22 vs $US11.4m FY21 Office: down 15 % on prior period - Key issue second • Spokane, WA hal
Slide 25: Water business – AUS/NZ and SE Asia
Water business – Magnesium Hydroxide Liquid “MHL” – a safe alkali chemical AUS / NZ STEADY, SE GROWTH EXPERIENCING HEADWINDS…BUT PROGRESSING FY22 Update: • AUS/NZ/SEA – Revenue FY22 $3.4m vs $3.5m in FY21 - slight decline 3% on prior Operations period. Overall GM up to FY22 19% (FY21 Locations 17%)
Slide 26: Advanced Batteries
Advanced Batteries 26
Slide 27: Advanced Batteries – novel structured high power electrode materials
Advanced Batteries – novel structured high power electrode materials PILOT PRODUCTION ON TRACK, FIRST EV TEST APPLICATION EARLY 2023 LOWER COST, SIMPLE, SAFE CHEMISTRY PROMISING PERFORMANCE NOVEL STRUCTURE SCALE-UP Early test results very promising UNDERWAY Approx. 6x lower energy route than convent
Slide 28: Biotech
Biotech 28
Slide 29: Calix's biotech business
Calix’s biotech business…very high surface area magnesium oxide - “nano/bio-active” GOOD PROGRESS ON ALL FRONTS: EARLY REVENUES + COMMERCIALISATION STEPS CONTINUE CROP PROTECTION Latest Updates Commercialisation: progress Proof-Of-Concept Market Value Drivers • Australia: label registration; ACHIEVE
Slide 30: Calix's FY23 priorities
Calix’s FY23 priorities… CONTINUED ACCELERATION – ESPECIALLY DECARBONISATION PROJECTS… Advanced Sustainable Water Biotech LEILAC Group Batteries Processing Water Treatment Crop Protection Advanced Renewable-powered CO2 Mitigation for Cathode & Anode Mineral and Chemical Cement & Lime Aquaculture Mar
Slide 31: Board of Directors, Equity Structure, Glossary
Board of Directors, Equity Structure Glossary 31
Slide 32: Board of Directors
Board of Directors Peter Helen Fisher Jack Phil Dr Mark Turnbull, AM Non-Executive Hamilton Hodgson Sceats Non-Executive Director Non-Executive Managing Executive Chair Director Director & Chief Director And Executive Officer Chief Scientist Experienced Chair and Non-Executive CEO and Managing Direc
Slide 33: Listed on the ASX in July, 2018
Listed on the ASX in July, 2018 ASX:CXL Share Price Performance Since Listing As at 23 August 2022 Shares on issue ~161.6m Share price on IPO $0.62 per share Current Share price $6.60 per share Market capitalisation ~$1.07b Further Equity Detail As at 23 August 2022 Major shareholders As at 23 Augus
Slide 34: Glossary
Glossary Term Meaning Aluminium (Al) Chemical element with the symbol Al Anode The negative electrode of a battery APVMA Australian Pesticides and Veterinary Medicines Authority BATMn Calix’s core kiln technology – electrified – for battery and catalyst materials production C, 2C, 4C, D Charge rate,
Slide 35: Glossary
Glossary Term Meaning Iron The chemical element, represent by “Fe” on the periodic table Iron Ore Iron oxide mixed with various other minerals, as mined and “pre-processed” (purified) as best as possible LFP Lithium Iron Phosphate – a battery cathode material LMO Lithium Manganese Oxide – a battery
Slide 36: Glossary
Glossary Term Meaning Nickel (Ni) Chemical element with the symbol Ni NCA A battery cathode material made from nickel, aluminium and cobalt NCM, or NMC A battery cathode material made from nickel, manganese and cobalt Pelletisation The formation of pellets from finer materials to aid in handling Pot
Slide 37: Because there's only one Earth… …Mars is for quitters
Because there’s only one Earth… …Mars is for quitters Phil Hodgson Darren Charles Simon Hinsley Managing Director & CEO CFO & Company Secretary Investor Relations phodgson@calix.global dcharles@calix.global simon@nwrcommunications.com.au +61 2 8199 7400 +61 2 8199 7400 +61 401 809 653 Follow us on T